Connect with us

Crypto News

15 French Crypto Investors File Charges against Binance Alleging Misleading Practices in € 2.4 million Losses

Published

on

15 French Crypto Investors File Charges against Binance Alleging Misleading Practices in € 2.4 million Losses

Binance France is facing charges following the complaint of 15 investors accusing the crypto exchange of misrepresentation, fraud concealment, and misleading commercial updates.

The court documents submitted by the attorney representing the 15 crypto investors allege Binance Holdings Limited and Binance France misled their clients through misrepresented commercial advertisements. Further, the plaintiffs’ attorney submitted that Binance contravened French laws by offering crypto services before satisfying the registration and legal requirements.

Misleading Promotional Communication and Business Practices

The December 14 filing claims that Binance conducted promotional activities even before its licensing by the country’s regulator in the financial market – Autorité des marchés financiers. The complainants observed that Binance received a digital asset provision license from the finance market watchdog in May 2022.

The plaintiffs consider that the license legalized Binance’s crypto-related activities, including digital assets custody and trading services. The documents submitted to the court capture screenshots demonstrating Binance engaged in promotional activity across the social media platforms before the exchange licensing. In particular, the complaint furnished the court with screenshots from the exchange Telegram feed named Binance French.

Alleged Fraudulent Practices

The December 14 filings assert that the 15 investors incurred €2.4 million loss following the calamitous TerraUSD (UST) collapse that Binance indicated in their advertisements as a toke backed by the US dollar. The complaint stated that LUNA token price suffered an unprecedented decline in May 2022. Also, the affiliate stablecoin TerraUSD (UST) lost the peg to exchange at $0.30 despite the Binance advertisement portraying its design as capable of maintaining algorithmic parity with the dollar (US $).

Binance Counters Allegations by Plaintiffs

Binance dismissed the allegations in a post countering the filing. Before licensing, the crypto exchange rules out engaging in promotional advertisements in France. It disputed the Telegram communications within the period alleged by the plaintiffs as global community forums where users of various nationalities establish and join voluntarily.

In addition, Binance clarified the plaintiffs misunderstood the Terra stablecoin advertisement. It indicated that it conveyed the communication to portray staking with the crypto exchange as safe and without reference to the underlying tokens’ stability. The blog post restated Binance’s practice of issuing market risk warnings to all crypto products and reinforced them with corresponding descriptions.


Tokenhell.com produces top quality content exposure for cryptocurrency and blockchain companies and startups. We have provided brand exposure for thousands of companies to date and you can be one of them too! All of our clients appreciate our value / pricing ratio. Contact us if you have any questions: info@tokenhell.com. Cryptocurrencies and Digital tokens are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by our authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content posted on the site. Read full terms and conditions / disclaimer.


Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Crypto News

Why Real Regulatory Change In Crypto Has Not Happened

Published

on

Why Real Regulatory Change In Crypto Has Not Happened



Legislators need to educate themselves on Web3 if they care about protecting consumers, Steven Eisenhauer, chief risk and compliance officer at Ramp, writes.


Source link

Continue Reading

Crypto News

South Korea to deploy cryptocurrency tracking system in 2023

Published

on

South Korea to deploy cryptocurrency tracking system in 2023


The Ministry of Justice in South Korea announced plans to introduce a crypto-tracking system to counter money laundering initiatives and recover funds linked to criminal activities.

The “Virtual Currency Tracking System” will be used to monitor transaction history, extract information related to transactions and check the source of funds before and after remittance, according to local media outlet khgames.

While the system is slated to be deployed in the first half of 2023, the South Korean ministry shared plans to develop an independent tracking and analysis system in the second half of the year. A rough translation of the ministry’s statement reads:

“In response to the sophistication of crime, we will improve the forensic infrastructure (infrastructure). We will build a criminal justice system that meets international standards (global standards).”

The South Korean police previously established an agreement with five local crypto exchanges to cooperate in criminal investigations and ultimately create a safe trading environment for crypto investors.

Related: South Korean prosecutors request arrest warrant for Bithumb owner: Report

The South Korean Supreme Court ruled that crypto exchange Bithumb must pay damages to investors over a 1.5-hour service outage on Nov. 12, 2017.

The finalized ruling from the supreme court ordered damages ranging from as little as $6 to around $6,400 be paid to the 132 investors involved.

“The burden or the cost of technological failures should be shouldered by the service operator, not [the] service users who pay commission for the service,” the court stated.


Source link

Continue Reading

Crypto News

Data Shows 50% Of Bitcoin Hashrate Controlled By Two Mining Pools

Published

on

50% of Bitcoin hashrate Controlled by Two Mining Pools

Bitcoin hashrate is becoming highly centralized, with a few mining pools controlling most of the blockchain mining power. The latest data from Mempool indicates that 50% of the total hashrate is held by Foundry USA and Antpool. 

A Highly Centralized Mining Network

Foundry USA has maintained a hashrate of over 30% of the total Bitcoin network for several weeks. It became the first mining pool of non-Chinese origin to lead the list in November 2021, following the ban on Bitcoin mining in China in the middle of the same year. 

Back then, Foundry USA contributed 17% of the total Bitcoin hashrate. Today, the US-based pool averages 34.1% of the mining power, equivalent to about 104 EH/s, considering that the Bitcoin hashrate is around 300 EH/S. 

Related Reading: First Bitcoin Mining Powered By Nuclear Energy To Open In The U.S. In Q1 This Year 

Antpool comes in second with about 18.0% of the total hashrate equivalent to about 58 EH/s. The Chinese-based pool used to be the largest Bitcoin pool but was affected by the ban on crypto mining which caused several miners in the region to migrate. 

Bitcoin Pool distribution records on Dec. 29, 2022 (3-day stats)/Mempool.com

What Is Behind This Trend?

The graph shows that over 80% of Bitcoin’s mining power is concentrated among just 5 pools. This contrasts with the beginning of 2022, when these five mining pools barely exceeded 60% of the hashrate. 

Some factors could have contributed to this rise. One of which is the location of the servers of the said pools. The closer the servers are to the pools and mining facilities, the lower the information transfer latency. This means that a miner will likely get more shares in the mining process and earn more Bitcoin (BTC) by connecting to a closer server. 

Bitcoin hashrate difficulty
Bitcoin hashrate difficulty for January/CoinWarz.com

Another factor is the financial incentives offered by these major mining pools. Bigger mining pools can consistently distribute profits to their members, who pay a commission for mining with their resources, driving more miners to their ecosystem. This is evident with the high mining difficulty in recent weeks due to the bullish movement of Bitcoin, making it difficult for smaller mining pools to be profitable. 

Related Reading: Why The S&P 500 Could Help Send Bitcoin Soaring Higher

However, Bitcoin’s highly centralized mining system poses significant dangers to the cryptocurrency. The miners could agree to reject transactions that do not meet a specific parameter leading to a 51% attack. 

We’ve seen such attacks occur on other Proof-of-Work blockchains like Ethereum Classic, which could be a problem for Bitcoin. In addition, these pools are recognized companies and could face pressures from regulatory agencies trying to control activities on the Bitcoin network. 

Bitcoin Price

So far, Bitcoin is still maintaining its bullish trend, with the leading cryptocurrency up by 40% since the start of the year. As of the time of writing, Bitcoin is trading at $23,400, according to data from Tradingview.com. 

Bitcoin Price on January 28| Source: BTCUSDT on Binance, TradingView
Bitcoin Price on January 28| Source: BTCUSDT TradingView

Featured image from Pixabay, charts from Trading View, Coinwarz, and Mempool


Source link

Continue Reading

Trending